The application disclose a packet processing method that includes: receiving, by a service distribution node, service routing information sent by a controller, where the service routing information includes a flow identifier, a service identifier, and a next-hop address, the flow identifier is used to identify a packet flow, the service identifier is used to identify a sequence of a service node instance that processes the packet flow, and the next-hop address is used to identify the service node instance that processes the packet flow; receiving a first packet; acquiring a first flow identifier according to the first packet, and searching the service routing information according to the first flow identifier to acquire a matched service identifier and a matched next-hop address; and sending a second packet to a first service node instance that has the matched next-hop address, which implements service processing on a packet flow.